In a statement, the party's finance spokesman Richard Bruton said the Government should urgently consider other options, including the creation of 'good banks' with clean balance sheets.

Mr Bruton said Fine Gael has huge concerns that the taxpayer is being asked to put money into existing banks without knowing the full extent of the hole in their balance sheet.

He said there was a real risk that the only result will be to allow the banks to nurse along their dodgy property lending while continuing to starve viable businesses of access to the creditthey so badly need.

The Labour Party's finance spokesperson Joan Burton said this would be the Government's fifth attempt to deal with the banking crisis and it is essential they get this one right.

A spokesperson has said the government hopes to conclude talks with AIB and Bank of Ireland over a recapitalisation deal by Wednesday.

'It is hoped that discussions with the banks will be brought to a conclusion some time tomorrow,' he said.

Taoiseach Brian Cowen will brief Cabinet colleagues later today on progress over the recapitalisation plans.